Marketing Strategies: Tesco's Expansion into the Romanian Market

This report provides a comprehensive analysis of Tesco's marketing strategies, focusing on its potential expansion into the Romanian market. It utilizes the SOSTAC model (Situation, Objectives, Strategy, Tactics, Action, Control) to outline a marketing plan, incorporating PEST analysis to evaluate political, economic, social, and technological factors influencing the market. The report details specific objectives using the SMART framework, analyzes market entry modes like Green field investments, and explores pricing and positioning strategies such as penetration pricing. Tactics related to product, price, and place (distribution) are discussed, along with considerations for standardization, adaptation, and glocalization. The report concludes by emphasizing the importance of control mechanisms, including key performance indicators (KPIs) and benchmarking, to monitor and evaluate the effectiveness of the marketing initiatives. References from various academic sources support the analysis, offering a well-rounded perspective on marketing principles and their practical application in a real-world business scenario.

Principles and Practices of marketing

 Introduction
 SOSTAC Model
◦ Situation
◦ Objectives
◦ Strategy
◦ Tactics
◦ Action plan
◦ control
 Conclusion
 References
Table of content

 Marketing refers to the critical framework of the business enterprise that is
made for profit and not profit criteria of the businesses. It is a wide
process that includes the proper research, design, customer satisfaction,
promotion, development and retention of employees who provide the
services to the customers in a very efficient way. It can be done by using
the core elements of the principles, strategies and tactics decision making.
This report is based on the Tesco which is a fashion retail store in the UK
and want to spend their business in Romania so that they will increase its
market growth and profits for a long term survival.
Introduction

SOSTAC Model
SOSTAC model is represent as a
marketing model that is proposed
by PR Smith since 1990s. It
includes the six acronyms that
shows the fundamental results of
the marketing.
Situation
This is the first step
which shows the marketing
planning framework that helps in
expanding the business and earns
a high market growth.

Pest analysis
 Political factor – Political factor of Romania is a republic independent
parliamentary that is linked with judiciary and legislative branch of the government
of country. It has strong relation with European countries and United States due to
this fact Tesco want to expand their market in the country because of good relation
between the country and they follow a liberalizing rule that is very helpful for the
company to expand their business without any extra cost and trade tariffs.
 Economical factor – The economic growth of the Romania is stable and due to this
country has be managed all the economic activities in a good way. They try to avoid
the uncertainty that was present the problem.
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 Social factor - This factor shows that Romania is far from ethnic composition in
the country. In this if a Tesco expand their market in romaine it is very difficult
by this factor as there people are far from ethnic composition. Also there
language are different form UK they follow a Romanian language to operate the
business they need to appoint the local employees who know that language. In
this Romania contains low score on Normative culture in the society.
 Technological factor – This factor show the using of advanced technology by
the country in this Romania is high- technology user country in the world and
there is tough competition with other high-tech country due to this expanding the
business of Tesco is favorable in the country.
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SMART Objectives
 Specific – In this organisation is expecting to encourage large customer
base with high profit margin related to their fashion store and their related
products.
 Measurable – In this Tesco is planning to increase their consumer base in
Romania by 20% and profit by 15%.
 Achievable – In this company is plan to accomplish and reach the goal by
providing proper training and development session to their employees so
that they work efficiently and effectively and give the positive outcome in
the Romania.
Objecvtives

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 Realistic – In this Tesco is enhancing their
revenues and sales by examining their
present and past data of the profit margin
and sales. In this it is notify that company
increase the total revenue by selling their
product to the customers.
 Time constraint – to achieve the high
market growth and large customer base in
the new market Tesco need 8 months in
achieving this target.

Porters generic model
 Cost leadership strategy - To enter into the new market Tesco can
choose the cost leadership strategy where they increase the profits by
charging the lower price and provides a variety of offers that may attract
the large customer base in the new market and company enhance their
profits and revenues.
Ansoff matrix
 in this Tesco is enter into the new market i.e. Romania and it helps in
increasing the sales and profits of the firm and also make new customers
within the new market. That helps in increasing the sales of the products
and profit margin of the firm.
Strategy

Market entry mode
Green field investments – Tesco choosing this mode of entry to enter into
the Romania as it is the largest fashion retail store in UK so to expand their
business unit and enhance the profit company need to directly enter into
the market by opening their stores to attracts the large customers base.
Pricing and positioning strategy
Penetration pricing strategy – In this firm charges the low price for their
quality products to enhance the market share.
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Product
 Product portfolio – in this Tesco offers in their fashion store a variety of
range including men’s wear, women’s wear, kids fear, jewelery etc. All this
product range attracts the number of customers as they offers the all age
group fashion products this will attracts the large customers base and
enhance the profit margin.
Price
 Penetrate pricing – It refer to that pricing that is initially low to garb the
large market share and earns a high margin profit.
Tactics

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Place
 Distribution – In this Tesco
distribute their products in
Romania where there are large
customer base and set a location
according to that where there are
majority of population is living.